How Steve Jobs and Apple Revolutionized Retail

Steve Jobs announcement that he would be stepping down as CEO of Apple has caused a flurry of news items noting his and Apple’s contribution to, well, the world. All these near eulogies are a little disturbing, but any retail reporter would be remiss in failing to note how Apple revolutionized the retail industry.

Apple stores debuted 10 years ago and had their share of critics: I was one of them. The locations were expensive, sold typically low-margin goods and were hard to reach with a vehicle; leaving many to wonder if the stores could be profitable on their own.

They are.

According to RetailSailes Apple stores have the highest sales per sq. ft. of any retailer in the United States. It’s difficult to confirm these numbers, since Apple has stores globally and many of the retailers on the list also have a global presence, but at $5,626 in annual sales per sq. ft., Apple is miles away from the No. 2 retailer — Tiffany & Co. — at $2,974 per sq. ft. annually.

From a design perspective, Apple stores are flawless. Temples to minimalism that echo the products in every way, including form and function. Apple has managed to sell large items from locations on busy urban streets, and refused to clutter up a store to get more sales per sq. ft. It refused to devalue its merchandise and commands premium pricing in a category known for big discounts and price drops every few months.

But more importantly, it created environments that people enjoyed visiting.

The best stores are ones that are filled with life. The energy in an Apple store is palpable, and it comes from both store employees and shoppers. Anyone who has visited a retail store in its final days knows how depressing a badly run business can be; shoppers can feel it.

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In response to Steve Jobs’ resignation, here are some of the comments from Apple’s competitors:

Leo Apotheker, CEO of HP: “Why Steve? Why didn’t you make this announcement two weeks ago? Before I decide to make the public announcement to discontinue the TouchPad and had it liquidated. I could’ve had a chance. Why? Why? I curse you!”

Shantanu Narayen, CEO of Adobe: “Err… what does this mean? Does that mean Apple will be using our Flash now?”

In all seriousness, none of the CEO made any of the comments above. I was just kidding around. I do sincerely wish the best for Steve Jobs and his family. He has been the beacon of hope in this dire business economy in the past few years. He has been a true visionary throughout his career and I am sure he will continue to contribute in whatever way he can. Thanks for all you have already contributed to all of us.